The CAIT in a statement today underscored the importance of risk mitigation for traders, asking them to explore alternative payment apps that are compliant with regulatory guidelines.
CAIT national president BC Bhartia and secretary general Praveen Khandelwal in the statement said the recent restrictions imposed by the RBI on Paytm have raised concerns about the security and continuity of financial services provided by the platform.
To ensure seamless functioning of transactions and safeguard financial assets, both asked Paytm users to switch to other payment apps, or consider direct UPI transactions. Banks have their payment apps, they said.
Hundreds of accounts created on Paytm Payments Bank without proper identification were one of the major reasons for the RBI to impose stringent curbs on the company, people familiar with the matter said.
More than 1,000 users were found to have linked the same Permanent Account Number (PAN) to their accounts. The compliance submitted by the payments bank was found to be incorrect during verification processes conducted by both the RBI and auditors.
The RBI is concerned some accounts could have been used for money laundering, sources said. After informing the Enforcement Directorate (ED), the RBI has sent its findings to the Home Ministry, and the Prime Minister’s Office.
CAIT the ED should investigate Paytm if evidence of fund irregularities is found. There were also reports of non-disclosure of major transactions within Paytm Payments Bank and associated parties, further intensifying regulatory worries.
“Our advisory is a precautionary measure to protect the financial interests of traders in light of recent developments. We encourage users to stay informed and take proactive steps to ensure the security of their funds,” the two CAIT officials said in the statement.
Transactions routed through the parent app of Paytm raised data privacy concerns, leading to the RBI’s decision to halt transactions through Paytm Payments Bank. While user deposits in savings accounts, wallets, FASTags, and NCMC (national common mobility card) accounts are not immediately affected, the company will have to rely on third-party banks for its operations until February 29.
Following the RBI’s notice, Paytm stock experienced a sharp decline, plummeting 36% over two days and wiping $2 billion off its market value. Paytm founder Vijay Shekhar Sharma dismissed the regulatory actions as a “speed bump” during a conference call with analysts, aiming to reassure stakeholders amid the ongoing turbulence.

Delhi Chief Minister Arvind Kejriwal took a swipe at the BJP today over “requests to join” the party, amid a row linked to allegations by the Aam Aadmi Party (AAP) leader that the BJP has been trying to poach their MLAs.

The Delhi Police’s Crime Branch has served notice to Mr Kejriwal and Delhi minister Atishi, asking them to give information on the allegations, given that the statements suggested they were “privy to certain information regarding commission of a cognisable offence”.

Mr Kejriwal, however, indicated his resistance to the BJP’s attack during a speech at the inauguration of a school building in Delhi’s Rohini.

“They can do whatever they want. Nothing will happen. I am not going to bow down to them. They say ‘come to BJP, we won’t trouble you’. No, not at all, I won’t join them. And what crime have we done that they need to pardon us?” Mr Kejriwal said.

“We have been working to improve schools, hospitals, clinics, roads… What’s wrong in that?” he added.

#WATCH | On laying the foundation stone of new school buildings in Kirari, Rohini, Delhi Chief Minister Arvind Kejriwal says, “… They ask us to join BJP saying they’ll spare us. I said I would not join the BJP… We are doing nothing wrong.” pic.twitter.com/9Tfggh4P5M

— ANI (@ANI) February 4, 2024

Crime Branch officials served notice to Mr Kejriwal on Saturday, asking him to reply within three days in a probe into his claims that the BJP tried to poach seven AAP MLAs. The notice to Atishi was served today.

On January 27, Mr Kejriwal and Atishi had claimed the BJP was trying to poach AAP MLAs by offering Rs 25 crore each and a ticket to contest next year’s assembly election.

The BJP refuted the allegations, calling them “false” and “baseless”, and dared the Chief Minister to give evidence to back his claims. The police have approached senior AAP leaders seeking assistance with the names of the MLAs who were approached by the BJP.

The Crime Branch has told Mr Kejriwal and Atishi to respond to the notice by February 5.

“An enquiry is being conducted by Crime Branch, Delhi Police, on a complaint received in respect of the allegations made by you that BJP has offered Rs 25 crore each to sitting MLAs of Aam Aadmi Party for leaving AAP and to join the BJP. These allegations were posted by you on X (formerly Twitter) on January 27,” the notice stated.

“The plain reading of the said tweet indicates that you are privy to certain information regarding commission of a cognisable offence. Therefore, you are hereby requested to provide answers to the questionnaire enclosed herewith by February 5,” the notice stated.

Some 40 MLAs of the ruling Jharkhand Mukti Morcha (JMM) and its alliance partners are returning to the state today from Hyderabad to attend the floor test tomorrow.

The MLAs were kept in a resort near Hyderabad after JMM leader Champai Soren was appointed Chief Minister. His predecessor Hemant Soren, the son of JMM co-founder Shibu Soren, is in jail in an alleged corruption case.

The ruling JMM took the ‘resort politics’ route to prevent its MLAs from being ‘approached’ by rival parties for switching sides.

The ruling alliance in Jharkhand has five more MLAs from the majority mark of 41 in the 81-member assembly. One of the 81 seats is vacant, hence the majority mark of 41 when counted for 80 seats.

The JMM, Congress, Rashtriya Janata Dal (RJD), and Communist Party of India (ML) have a total of 46 MLAs. These are JMM (28), Congress (16), RJD (1), and CPI(ML) 1.

The BJP and allies have 29 MLAs.

Unless something drastic or a big twist happens, the JMM government will sail through the floor test, political analysts said.

This is not the first time the JMM is facing a floor test. In September 2022, Hemant Soren’s government won a majority test with 48 votes in his favour. Then too, Hemant Soren faced a threat of disqualification from the assembly over allegations of corruption.

The current Chief Minister, Champai Soren, has actively participated in the Jharkhand movement in the late 90s along with Shibu Soren. He was a Transport Minister in the Hemant Soren government. He also has the backing of the Soren family.